Canada's AltaGas Q2 adjusted EPS beats estimates, lifts 2026 outlook

Overview

• Canada energy infrastructure firm's Q2 adjusted EPS beat analyst expectations

• Q2 normalized EBITDA rose to C$391 mln, driven by higher export volumes and margins

• Company raised 2026 guidance for normalized EBITDA and EPS after strong year-to-date performance

Outlook

• AltaGas raises 2026 normalized EBITDA guidance to C$2.0 bln–C$2.1 bln

• Company lifts 2026 normalized EPS guidance to C$2.35–C$2.60

• AltaGas ups 2026 capital budget to C$1.8 bln, citing higher project costs

Result Drivers

• EXPORT VOLUMES AND MARGINS - Co said record LPG export volumes to Asia and higher margins drove Midstream segment growth

• UTILITIES MODERNIZATION AND RATES - Utilities segment benefited from pipe modernization investments, new rates in D.C. and Virginia, and stronger retail margins

Company press release: ID:nCNWvBxxSa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for AltaGas Ltd is C$56.00, about 0.6% above its July 29 closing price of C$55.64

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 27 - Canada's Gibson Energy Q2 net income rises on record Infrastructure segment EBITDA

• July 29 - Canadian Utilities Q2 adjusted EPS beats estimates

• July 29 - Antero Midstream Q2 revenue slightly beats estimates, adjusted EBITDA misses

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)